Consulting An Attorney About Your Debt Earlier
When it comes to mounting debts, early intervention makes for a better overall solution
. For this reason, Ron Nevin, an attorney of the Law Office of Ron Nevin in Nashville, Tennessee, recommends you consult with an attorney as soon as you realize that your debt is becoming a problem. Here, Nevin talks about the effects of mounting debt and when you should consider asking an attorney for help.
Dealing with excessive amounts of debt can be both financially and emotionally devastating. Harassing calls and letters from creditors, threatened foreclosure or repossession, and the loss of your good credit are enough to make you feel as though theres no way out. Fortunately, help is available for families who are struggling with debt.
However, most people who consult attorneys for help with their debt wait too long to do so. Often they allow themselves to fall so behind on payments that catching up doesnt seem like an option anymore. While debt relief is certainly possible at this late stage, addressing financial problems earlier allows us to minimize the potential for major consequences and to put a plan in place to get out from underneath oppressive debt in the most expeditious way possible.
Why to Ask an Attorney for Help
Rather than waiting until youve fallen behind on payments, its important to seek help as soon as it becomes clear that falling behind is likely to happen. For example, if youre living paycheck to paycheck and are barely able to pay your bills each month, losing your job will likely be the straw that breaks the camels back. By consulting with an attorney as soon as youve lost your job, you may be able to avoid falling into a particularly dire situation.
Likewise, if you dont have health insurance, a major illness or injury can create a serious debt problem quickly. All too frequently, medical bills, minimal savings and an inability to work are a recipe for financial ruin. An attorney may be able to help you find a way to deal with your mounting medical bills without jeopardizing your credit.
How Your Attorney Will Help You
Once you can see that youre going to have difficulty making payments on time, you should consider seeking legal advice. An attorney can help you find relief from oppressive debt in a number of ways.
Renegotiation: First, after talking with you about your financial situation, your attorney will help you determine the best course of action, represent you in hearings, and work with your creditors to re-negotiate your interest rates and payment terms. This will make it easier for you to meet your financial obligations on a month-to-month basis and to keep your credit intact.
Chapter 13 Bankruptcy: If negotiating with your creditors is not an option and you have a steady income, your attorney may advise you to file for Chapter 13 bankruptcy. Chapter 13 bankruptcy allows you to repay your debts in a way that will be more manageable for you and helps you to restore your credit. When you file for Chapter 13, your debts are consolidated into a single monthly payment, the amount of which is determined by your income and amount of debt. Chapter 13 bankruptcy not only lowers your monthly financial obligation, it also stops creditor actions against you and allows you up to five years to repay your debts.
Chapter 7 Bankruptcy: When all other options have been exhausted or if you dont have a steady source of income, your attorney may advise you to file for Chapter 7 bankruptcy. Chapter 7 bankruptcy provides you with permanent relief from the majority of your debts and stops creditor actions against you. In a Chapter 7 bankruptcy, your debts are discharged and your assets, with a few exceptions, are distributed among your creditors. You are allowed to retain certain exempt assets. Your attorney will help you understand which assets youll be allowed to keep after filing for Chapter 7 bankruptcy.
Mounting bills and pressure from creditors can make anyone feel uneasy. Whether or not you ultimately choose to file for bankruptcy, getting an attorney involved as early as possible when debt becomes a problem offers you the best chance at a positive outcome. Remember, meeting with an attorney is the first step toward finding relief from debt and getting back on the right financial path.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.
by: Ron Nevin
Debt Elimination Strategies - 2 That Will Work For Many People Instant Personal Finance - Granted To You without Any Hitch Why Purchase Twitter Followers? Call Center Debt Collection Booms In Eastern Europe ECB Bond Purchase - How will it affect the Euro Purchase wholesale battery suppliers to enjoy its long lasting life Packaging Tape Can Be A Useful Purchase Why To Hire Debt Collection Agencies To Recover Your Money? Feature Of Voucher Codes Vouch Your Purchases Settling Your Debts – 5 Steps To Avoid With Debt Settlement Cred Card Debt Free – How Expert Negotiators Can Eliminate Your Debt Debt Settlement Truths Debt Settlement – Take Advantage Of The Recession And Eliminate Debt